US TSYS: Early Gains Moderate, Front End Yields Lower with 10-Yr Flat
Earlier gains for bond futures moderated in the afternoon, with the US 10-Yr bond future. The 10-Yr had rising by +04 earlier but now +02 in the Asia afternoon at 112-25+. TYH6 has upper resistance from the 50-day EMA of 112-27+ which it failed to break earlier.
Cash is given back earlier gains also withe the 10-Yr now flat on the day, having been down -1bps at midday.
- The 2-Yr is down -0.4bps at 3.521%
- The 5-Yr is down -0.3bps at 3.671%
- The 10-Yr is flat at 4.10%
- The 30-Yr is up +0.3bps at 4.759%
- Tonight's focus for issuance will be a 6,13 and 26 week bills as well as a 3-Yr US$58bn note auction.
- Key data for bond markets tonight in the US will be Personal Income/Spending, PCE Prices, Univ of Mich Sentiment/Current Conditions/Expectations and Inflation expectations.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US TSYS: TYZ5 Fails to Hold Above Key Tech Level (amended)
Bond futures took the overnight lead and rallied strongly in the morning session, but failed to hold above a key technical, falling back in the afternoon. TYZ5 is up +0.04 at 112-29+, after a high of 113-02+ earlier, just above the 20-day EMA of 113-01+ only to retreat in afternoon trade.
Cash has been strong also with yields 1-2bps lower across the curve.
- The 2-Yr fell -1.6bps to 3.561%
- The 5-Yr is down -1.7bps at 3.68%
- The 10-Yr is lower by -1.6bps at 4.072%
- The 30-Yr is down -1bps at 4.657%.
The bond market has been starved of data but will get some non-government led releases tonight in the ADP Employment Change (consensus 30k; prior -32k) S&P Global US Services PMI (forecast 55.2; prior 55.2) and ISM Services Index (forecast 50.8; prior 50.0).
For issuance, the focus tonight remains on bill issuance with a US$95bn 6-week bill auction ahead of the US Treasury Quarterly Funding announcement.
MNI EXCLUSIVE: An Advisor On PBoC's Funding Of Tech Firms
US TSYS: TYZ5 Bounces from Key Tech Level, Gives Back Early Gains
Bond futures took the overnight lead and rallied strongly in the morning session, but failed to hold above a key technical, falling back in the afternoon. TYZ5 is up +0.05 at 115-23+, after a high of 115-29+ earlier, just above the 20-day EMA of 115-28+.
Cash has been strong also with yields 1-2bps lower across the curve.
- The 2-Yr fell -1.6bps to 3.561%
- The 5-Yr is down -1.7bps at 3.68%
- The 10-Yr is lower by -1.6bps at 4.072%
- The 30-Yr is down -1bps at 4.657%.
The bond market has been starved of data but will get some non-government led releases tonight in the ADP Employment Change (consensus 30k; prior -32k) S&P Global US Services PMI (forecast 55.2; prior 55.2) and ISM Services Index (forecast 50.8; prior 50.0).
For issuance, the focus tonight remains on bill issuance with a US$95bn 6-week bill auction ahead of the US Treasury Quarterly Funding announcement.
